EMC has signed a ‘definitive agreement’ to buy out IaaS provider Virtustream for a cool $1.2bn in cash.
The newly acquired company will form the backbone to EMC’s new managed cloud services business, central to the storage giant’s new cloud-y ethos.
“Virtustream is an exceptional company and this is a critical and transformative acquisition for EMC in one of the industry’s fastest-growing and most important sectors,” said CEO Joe Tucci. “With Virtustream in place, EMC will be uniquely positioned as a single source for our customers’ entire hybrid cloud infrastructure and services needs. We could not be more delighted that Virtustream will be joining the EMC Federation family. It’s a game changer.”
The new additions to the portfolio will be available to both channel partners and directly. EMC Federation service provider partners will gain access to Virtustream’s xStream cloud management software platform, enabling them to deliver white-label services to customers.
The six year-old company, which has a tight focus application lifecycle automation and orchestration, has quickly established itself as an industry leader in the hosted cloud space.
“We believe that we help fulfill the EMC vision of being able to run any type of enterprise application in the cloud, anywhere in the world, through ultimately whatever method of consumption makes sense for the customer,” said CEO and co-founder Rodney Rogers in a blog post. “EMC’s reach, sales force, commercial model and asset base will literally give us the opportunity to take this precious kernel of IP that we have developed and reach the world with it.”